Don’t Forget the Basics
Scott T. Cathy
Scott Cathy is a former manager for Zayre Department Store and is currently General Manager for Ampac Security Products, LLC.
My Dad once told me that I had a way of making things complicated. Unfortunately I have had to learn this lesson many times over the years usually in some dramatic fashion. My father would simply shake his head, curse his gene pool and mutter to himself, “keep it simple, stupid”.
As I travel across the country spending time with Loss Prevention professionals I often picture my father shaking his head. I hear conflicting stories of large capital expenditures for high tech gadgets and shrinking budgets with lower headcounts. Maybe we have become too close to the problem. Or maybe we have become so accustomed to technology solving our problems we overlook the simple solutions.
The issue: During a time of fascination with technology and shrinking budgets, how do I get people to understand that the simple answer might be the best answer? If you want to stop employees from stealing your cash, protect the cash. Pure genius I know, but stay with me. First, develop a belief system within the organization; a system that clearly defines what is right and what is wrong. This must be an organizational mindset, from the very top of the organization to the bottom. Mark Manney from Market Integrity would call it a “Culture of Controls”. Already have that established? Good. Next, what have you done to break up the crime triangle? I describe the crime triangle with something I borrowed from my friends in the fire service. The fire triangle consists of fuel, heat and air. You put the fire out by eliminating one of the legs of the triangle. The crime triangle consists of need, motive and opportunity. Disrupt this triangle and you prevent theft. But as loss prevention professionals you already understand this. There are things you can do to break-up this crime triangle. Understand your limitations. You can institute hiring practices and testing procedures but this will not catch everyone nor will it help identify the disillusioned employee. You can do little to affect need or motive. You must attack opportunity. Again, I know, LP 101.
How are you protecting your cash? Are you tired of hearing excuses from store managers about turnover and complicated cash handling procedures? Why do employees steal? Employees steal because they feel slighted by the company or they see another employee steal and not get caught. Perhaps they are just pre-disposed to steal. Bad DNA I guess. Remember one out of ten employees will always try to steal. One out of ten will never steal. The trick is making sure the other eight see the light and follow the good example and not the bad. This is where the “Culture of Controls” mindset helps. Develop a strong cash handling system. Use it, reinforce it and adjust it as needed. But a corporate mindset is only one part of the answer. To borrow a phrase from Ronald Reagan, “Trust but verify.” An integral part of this cash handling procedure is the incorporation of a cash control bag. This is the verification. This little bag can work wonders. Time and again it has provided LP Managers with a success story when other more technology-based options could not. The goal is to keep those other eight employees from going to the dark side. As a manager in retail I have seen these products work first hand.
Sounds easy enough right? The problem: These bags cost money. The business world recognizes the need to spend money to make money but generally comes up short on spending money to save money. Another statement of the obvious, pure genius I know. What the business world does understand is return on investment (ROI). Here it is, plain and simple. I am going to give you a one-dollar bill for every nickel you give to me. Now run to every bank in the state and start collecting nickels. The reality is your employees are not stealing one-dollar bills. They are stealing the fives, tens and twenties. That is the return on investment. This is what a cash control bag in concert with a strong cash handling procedure can do for your organization. You will save real dollars for every nickel you spend and the results will be visible. If this is such a good deal why aren’t others taking advantage of these ideas? First, many companies are. Second, time constraints, internal politics, resources and your head-trash are keeping organizations from making these changes. You can find examples of how these bags work across a variety of markets. I have used them myself. I have seen them work.
In a recent study by The University of Florida, employee theft was described as an epidemic. Not earth shaking news to you. There is no getting around the effectiveness of technology for some issues. Closed circuit cameras and other high tech gadgets may be good for some issues but they have limits. A cash control bag is certainly not high tech but it does provide a high level of confidence in protecting your cash. Again, just trying to muddy the water.
Imagine that, a low-tech answer to a low-tech problem. Keep it simple, right? Perhaps there is hope for me yet.
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